Woman Files $5 Million Class Action Over Broken iPhone Power Button

The power button on a woman’s iPhone 4 failed, and she’s not able to turn the phone on or off. That pretty much renders it useless, so she ditched AT&T and got a new phone. But she never forgot that shiny, shiny iPhone that broke down shortly after its initial one-year warranty was up. She filed a class action on behalf of herself and other powerless iPhone users. What raised eyebrows is that she sued under the federal Racketeer Influenced and Corrupt Organizations (RICO) Act, accusing Apple and AT&T of conspiring together to sell expensive two-year contracts on phones that break after one year.

Customers have a few options: they could get an out-of-warranty replacement from Apple for $150, or replace the worn-out part themselves.

It sounds wacky, but GigaOM notes that using RICO statutes in class actions is becoming more popular. The suit also invokes California’s unfair competition laws, claiming that Apple gained an unfair advantage over competitors and fleeced customers by selling self-destructing phones.

“Wait a minute,” you say, “wasn’t there already a class action regarding the iPhone 4?” Yes, but that was almost an entire year ago, and regarded the infamous antenna problems with the first iPhone 4. Customers who didn’t want to use a bumper or other case were entitled to fifteen bucks, two years after the iPhone 4 hit the market. Also known as “two iPhones later” for many early adopters.